Tanker collision raises insurers’ fears of dark fleets
A collision between two tankers off the coast of Denmark has revived insurers’ concerns about the risk of so-called ‘dark fleets’ and the prospect of insurers being left to cover losses where the ownership of a vessel is unclear.
On March 2, the Andromeda Star, a 15-year old oil tanker, collided with a cargo ship just south of Copenhagen.
According to the Danish Maritime Authority (DMA), the tanker came to a sudden stop rounding the northern tip of Jutland. It is reported that the ship, which was empty at the time, was on its way to a Russian port to load oil.
The Andromeda Star was sold to undisclosed buyers four months ago. The vessel is managed by India-based Margao Marine Solutions, however, according to a report from The Maritime Executive, no P&I insurer is listed on the European Maritime Safety Agency’s Equasis database.
The case has further raised concerns among Danish authorities and insurers about the risk posed by dark fleet vessels that carry tonnes of Russian crude oil through the Danish straits on a daily basis.
The sanctions in place against Russian businesses and individuals as a result of the ongoing conflict in Ukraine have led dark fleet vessels to turn to second-tier insurers outside of the International Group of P&I Clubs that provide liability cover for 90% of the world’s ocean-going tonnage.
For Danish regulators, the concern is not just the lack of clear ownership or reliable insurance. Many of the vessels are in poor condition and close to or past retirement age, thereby raising the risk of a serious catastrophe if a more serious collision were to take place.
It has also been reported by the Financial Times and Danish NGO Danwatch that a number of dark fleet tankers are routinely rejecting expert navigators when crossing the Danish straits.
The report quoted Mikael Pedersen, chair of the Union of Danish Pilots, as saying that, prior to the conflict in Ukraine and imposition of sanctions, Russian vessels used to “responsible”. But now the ships are “typically around 20 years old, perhaps uninsured, the crew is poorly trained, the ships are poorly maintained and now they often sail without a pilot”.
